Two Leveraged ETFs For Rapid Near-Term Gains

August is living up to its reputation as a tough month in which to be long stocks.

With Thursday's 1.4 percent tumble, the S&P 500 is down more than three percent since the start of the month and nearly two percent in just the past five sessions.

Related: Seasonal Trends: Three ETFs to Own in August.

Eager bulls may find some comfort in knowing that August is half over, but they would do well to not get too cozy. In terms of performance, September is nothing to write home about. In fact, September is the worst month of the year for the S&P 500, Dow Jones Industrial Average and the Nasdaq Composite, according to the Stock Trader's Almanac.

Fortunately, there are a few leveraged ETFs investors can use over the coming weeks for rapid, and yes, large potential gains. The following duo looks especially promising.

Direxion Daily Gold Miners Bull 3X Shares NUGT
No, that is not an error on your monitor. The Direxion Daily Gold Miners Bull 3X Shares is really up more than 55 percent in just the past five days. NUGT is being reverse split 1-for-10 on August 20.

If the ETF keeps its current pace up, it could be trading at $140, $150 or higher after the split. Reason to consider: The Market Vectors Gold Miners ETF GDX, the ETF NUGT is the triple-leveraged equivalent of, is not only soaring itself, but has also broken through important technical resistance that should encourage fresh buying. GDX could easily run another $5 before seeing its next legitimate resistance area.

ProShares UltraShort Financials SKF
Financial services has been of the year's top-performing sectors. So strong have been banks, brokers and insurance providers that the sector is close to toppling technology for the largest sector weight in the S&P 500.

The sector's previous success could make it ripe for a pullback and some recent, negative headlines pertaining to J.P. Morgan Chase JPM, one of the largest holdings in scores of bank ETFs, could prompt some near-term downside. Including SKF here is not a medium- or long-term bear call on financials, but it is hard to envision the sector remaining durable through a broader market pullback.

SKF is close to moving above its 50-day moving average, which could stoke upside to the $24-$25 area. The fund is the double-leveraged inverse equivalent of the iShares Financial Sector ETF IYF.

For more on ETFs, click here.

Disclosure: Author is long SKF.

Posted In: Long IdeasNewsSector ETFsShort IdeasSpecialty ETFsCommoditiesAfter-Hours CenterMarketsTrading IdeasETFs

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.